TCS denies Fraud in Hiring Process, Company said Few Employees Violated Code of Conduct

A report in business news website Mint had said that a whistleblower had written to the company’s Chief Executive Officer and Chief Operating Officer alleging that TCS’s Resource Management Group (RMG) head, ES Chakravarthy, had been receiving commission from staffing firms for years. Taking. Following this complaint, the company had formed a team of three senior executives, including TCS Chief Information Security Officer, Ajit Menon, to investigate the allegations.

It was told in this report that after investigation, the company has sent the head of recruitment on leave and dismissed four executives from RMG. Apart from this, three staffing firms have been blacklisted. However, information about the blacklisted staffing firms is not available. In this report, an executive was quoted as saying that the people involved in this scam may have received around Rs 100 crore through commission. Regarding this, TCS spokesperson said, “Complaints of violation of code of conduct are regularly received. The company has a robust process to investigate and resolve them.”

On this issue, TCS has said in a statement to the stock exchanges, “We have investigated the allegations made in the complaint. This investigation found that these allegations do not relate to any fraud on the part of the company or against the company. There is no financial implication. The context of the alleged scam is false. The issue is related to the violation of the code of conduct by some of the employees and contractors. ” Generally, large IT companies like TCS recruit executives through employee referral programs and staffing firms. Apart from this, services of staffing firms are taken to hire temporary workers or contractors in the company.